In 2007, Potrus, an accrual basis firm taxpayer, obtained a $40,000 advance for a sequence of eight lectures by quite a few employees for the Paintings Institute. After delivering 5 lectures, the sequence was cancelled for poor attendance. Potrus refused to return any of the advance payment, so the Paintings Institute sued. In 2008, Potrus was ordered by the courtroom to repay $15,000. Potrusâs internet income was $426,000 in 2007 and $298,000 in 2008. How must Potrus cope with the compensation to amass among the best tax finish outcome?